Wells Fargo does not offer a high yield savings account

Wells Fargo's standard savings account earns interest, but the rate is not competitive with what other banks call high yield. As of early 2024, Wells Fargo's savings accounts earn between 0.01% and 0.05% annual percentage yield (APY), depending on your account type and balance. Online banks and credit unions often pay 4% to 5% APY on savings accounts, which means your money grows much faster elsewhere.

If you have money sitting in a Wells Fargo savings account expecting meaningful interest, you are earning roughly what you would in a checking account. The bank does not market a high yield product because it does not need to — many customers keep accounts there for convenience, direct deposit, or because they already have a mortgage or loan with Wells Fargo.

Key Takeaways

  • Wells Fargo savings accounts pay between 0.01% and 0.05% APY, which is far below what high yield savings accounts at other banks offer.
  • Online banks and some credit unions pay 4% to 5% APY on savings, meaning your money earns 50 to 100 times more interest at those institutions.
  • Wells Fargo does offer money market accounts, but those rates are also low compared to competitors offering similar products.
  • Moving savings to a higher-yield account costs nothing and takes a few days, so the difference in interest compounds quickly over months and years.

What Wells Fargo savings accounts actually pay

Wells Fargo offers several savings products: the standard Savings account, the Money Market account, and the Certificate of Deposit (CD). The Savings account is the most common, and it pays the lowest rate. The Money Market account typically pays slightly more but still lags far behind competitors. CDs pay a fixed rate for a set term, and Wells Fargo's CD rates are also below what you can find elsewhere.

Interest rates change, so the exact percentage Wells Fargo pays today may differ from what it paid last month. You can check the current rate by logging into your account online, calling Wells Fargo at 1-800-869-3557, or visiting a branch. The rate you receive may also depend on your account balance — some banks pay more on larger balances, though Wells Fargo's tiered rates are minimal.

How high yield savings accounts work at other banks

A high yield savings account is simply a savings account at a bank or credit union that pays a much higher interest rate than traditional banks. Most online banks (like Marcus, Ally, or Discover) have no physical branches, which lets them keep costs low and pass higher rates to customers. Credit unions also often pay more than large national banks because they are member-owned and not focused on maximizing shareholder profit.

High yield accounts work exactly like a Wells Fargo savings account: you deposit money, it earns interest monthly, and you can withdraw it anytime without penalty. The main difference is the rate. If you keep $10,000 in a Wells Fargo savings account earning 0.01% APY, you earn $1 per year. The same $10,000 in a 5% APY account earns $500 per year — a difference of $499 that compounds year after year.

Moving money from Wells Fargo to a higher-yield account

Transferring savings to another bank takes a few days and costs nothing. You can open a new account at any online bank or credit union without closing your Wells Fargo account. Most banks let you link your Wells Fargo account and transfer money electronically using your routing and account number. The transfer usually clears within one to three business days.

You do not have to move all your money at once. Many people keep a small Wells Fargo account for direct deposit or bill pay and move their savings elsewhere. You also do not lose FDIC insurance — both Wells Fargo and the receiving bank insure deposits up to $250,000 per account holder, so your money stays protected during and after the move.

Why Wells Fargo rates stay low

Large national banks like Wells Fargo do not need to offer high rates to attract savings. They have millions of customers who keep accounts for convenience, paycheck deposits, or because they have a mortgage or auto loan with the bank. They also make money by lending out deposits at higher rates, so they do not need to pay depositors much to stay profitable.

Online banks and credit unions compete on rate because they have no branch network and must attract customers through interest alone. Wells Fargo competes on convenience and brand recognition instead. If you value having a physical branch and a Wells Fargo relationship, you pay for that convenience in lower interest rates.

Money market accounts and CDs at Wells Fargo

Wells Fargo's Money Market account pays slightly more than its Savings account but still falls short of what competitors offer. The account requires a higher minimum balance to open (often $2,500 or more) and may charge a monthly fee if your balance drops below that minimum. You also get a debit card and checkbook, which a savings account does not include.

CDs lock your money away for a set term — typically three months to five years — in exchange for a fixed rate. Wells Fargo's CD rates are also low compared to online banks and credit unions. If you need access to your money within a year or two, a CD may not make sense anyway, since early withdrawal penalties can erase the interest you earned.

Frequently Asked Questions

Can I earn more interest by keeping a larger balance at Wells Fargo?

Wells Fargo's savings rates do not increase significantly with higher balances. Even customers with $100,000 or more in savings earn roughly the same low rate as those with $1,000. Online banks and credit unions often pay the same high rate regardless of balance, making them a better choice for larger savings.

What if I need to keep money at Wells Fargo for my mortgage or loan?

You do not have to keep your savings at Wells Fargo just because you have a mortgage or loan there. You can move savings to a higher-yield account and keep your loan with Wells Fargo. The two accounts are separate, and moving savings does not affect your loan terms or payments.

Do online banks have the same safety protections as Wells Fargo?

Yes. Online banks and credit unions are insured by the FDIC or NCUA, the same federal agencies that insure Wells Fargo deposits. Your money is protected up to $250,000 per account holder at any insured institution, whether it is a large bank or a small online bank.

What happens to my interest if I withdraw money from a savings account?

You earn interest on the balance you hold each day. If you withdraw money mid-month, you earn interest only on the amount you held before the withdrawal. There is no penalty for withdrawing from a savings account at Wells Fargo or any other bank — you simply earn less interest that month.